December 05, 2011

Facebook hires Gowalla staff to beef up location-based services


Facebook has hired the entire design and engineering team of Gowalla, a Texas-based rival to Foursquare, in a signal it plans to step up its focus on location-based services.

Facebook has hired the entire design and engineering team of Gowalla, a Texas-based rival to Foursquare, in a signal it plans to step up its focus on location-based services.
Facebook has experimented with "check-in" services, with features like Facebook "Places", but they struggled to gain real traction. 
 
The social networking giant has experimented with "check-in" services, with features like Facebook "Places", but they struggled to gain real traction. However, it is thought to be stepping up its assault on the potentially lucrative market ahead of a long-awaited initial public offering, expected in the second quarter of next year.
By identifying where its users are at any one time through check-in services, Facebook can offer advertisers more targeted products, for example, the opportunity to send customers offers for restaurants as they are passing by, as well as make consumers more likely to keep returning to the site.
Early US reports claimed Facebook had acquired the check-in service outright. However, the Gowolla mobile app will be closed in January when its staff relocate to California. Facebook will not acquire its technology or data.
Facebook said: "We realized that we share many of the same goals: building great products that reach millions of people, making a big impact quickly. We're sure the inspiration behind Gowalla will make its way into Facebook over time."
Gowalla was launched in 2009, on the same day as Foursquare, but failed to make the same mark.

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